Gold steady as investors await US inflation data, Mideast tensions ease
Gold prices held steady on Thursday as investors awaited U.S. inflation data to gauge the interest rate outlook and kept an eye on the Middle East as geopolitical tensions eased, while palladium and platinum saw sharp rises.
Spot gold was flat at $3,333 per ounce, as of 0227 p.m. ET (1827 GMT).
U.S. gold futures settled 0.2% higher at $3,348.
"Gold has declined over the past few sessions due to de-escalation in the Middle East. Also, adding pressure was the anticipated interest rate cut, eagerly awaited by the market that continues to be delayed, amid rising inflation expectations driven by Trump-era tariffs," said David Meger, director of metals trading at High Ridge Futures.
Markets currently anticipate two rate cuts totalling 50 basis points this year, starting in September. Investors are now eyeing Friday's Personal Consumption Expenditures (PCE) data for more clues on the Federal Reserve's policy path.
Non-yielding gold thrives during times of uncertainty and inflation, but higher interest rates make it less attractive.
Elsewhere, spot silver rose nearly 1% to $36.63, its highest level since June 18.
"If silver does get above $37.50, then it has potential to go higher," said Michael Matousek, head trader at U.S. Global Investors.
Palladium jumped over 8% to $1,136.68 after hitting its highest since October 31, 2024. Platinum added 5.1% to $1,423.26, climbing near its September 2014 peak.
"The strength in platinum and palladium prices is just a June phenomenon, which reflects speculative buying with some investors increasing their inventories believing prices were undervalued given the tightness in the market," said Jeffrey Christian, managing partner of CPM Group.
In May, the World Platinum Investment Council (WPIC) reported a rise in demand for platinum jewelry in China, worsening the structural market deficit.
Platinum may touch $1,500/oz over next few days and drop to $1,200 in two weeks, while palladium could be back down to around $1,050 by mid-July, Christian added.
Source : Reuters
